RUG Rugby Resources Ltd

Rugby Resources Ltd. (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce that recent exploration has significantly enhanced the potential of the Company’s Venidero epithermal gold-silver project in Santa Cruz Province, Argentina.

Highlights

• Multiple areas of silica alteration with blocks of vein material identified.
• New ground magnetic surveying and reprocessing of previous survey data has defined prospective structures for ore deposition.
• Follow-up mapping and geochemical sampling is planned.
• The project is undrilled.

The Venidero project comprises 80 square kilometres (“km”) near the western margin of the Deseado Massif, Santa Cruz Province, Argentina (Figure 1). It is 60 km south of Newmont’s Cerro Negro gold mine (reserves of 2.56 million ounces of gold grading 8.89 g/t - 2021 Newmont Reserves Release).

Figure 1 - Venidero Project Location

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Venidero gold mineralisation is within the same Jurassic Chon Aike volcanic formation that hosts the Cerro Negro deposit. Prior to this program, exploration had identified two high priority targets at the “Gorgonzola Vein” and another 12 km to the south, referred to as the “Silica Cap” (Figure 2).

Figure 2 - Processed Landsat image showing gold geochemistry and prospect location

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The undrilled north-south trending Gorgonzola Vein displays high level hydrothermal breccia and chalcedonic to opaline colloform banded veins within a regional fault structure. Previous surface rock chip sampling returned grades up to 4.45 g/t gold (Figures 2 and 3). Textures and geochemistry indicate the veins are exposed at a high level within an epithermal gold vein system. Drilling is required to test the system at deeper levels as shown in the Conceptual Model (Figure 4).

Figure 3 - Gorgonzola vein gold geochemistry (left) and epithermal silica outcrops (right)

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Figure 4 - Low sulphidation epithermal deposit model applied to the Gorgonzola Vein

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Rugby has conducted two ground magnetic surveys: a Northern grid with readings on 80 metres (“m”) spaced 045° lines and a Southern grid with readings on 200m spaced E-W lines.

The recent 132-line km ground magnetic program on the Southern grid shows a strong magnetic low (structure) that bifurcates from the main trend towards the southeast (Figure 5). Prospecting during the course of the survey on the Southern grid discovered 14 areas of low temperature silica, including blocks of vein material up to 1m in diameter. The silica zones are up to 100m long and appear to be related to interpreted structures within magnetic lows which are considered prospective for ore deposition (Figure 5). The veins were not sampled during the program due to lack of suitable sampling equipment, however detailed mapping and geochemical sampling of the prospective areas will be conducted when the area is accessible following winter.

Rugby’s Chairman, Yale Simpson stated: “Venidero is emerging as an extensive epithermal vein field. The geologists who discovered the Cerro Moro gold silver deposit identified strong north-westerly structures within the ground magnetic data at Venidero. It is well known that such flexures are important for localising gold silver mineralisation. The magnetics also define favourable structures under overburden in the central sector of the vein system. Experience has shown that sulphide-rich veins can be higher grade and preferentially eroded. This is certainly the case at Cerro Moro and Cerro Negro”.

Figure 5 - RTP Magnetic surveys with interpreted structures (white dashed lines) and sample locations (black circles)

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An exploration campaign comprising geological mapping and detailed rock chip geochemistry is planned for H2-2023.

Qualified Person

Paul Joyce, Rugby’s Chief Operating Officer, Director and a “qualified person” (“QP”) within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the scientific and technical information that forms the basis for this news release. Paul Joyce is a Fellow of the Australian Institute of Geoscientists (registered member # 1908).

About Rugby

Rugby Resources Ltd. is an exploration company conducting “discovery stage” exploration on a portfolio of copper, gold and silver targets in Colombia, Argentina and Chile. Rugby recently discovered the large scale Cobrasco copper-molybdenum porphyry and is advancing the discovery to demonstrate its full potential. Cobrasco is located in the western cordillera, a mineral belt that hosts large scale copper molybdenum mines/discoveries in Chile, Peru, Ecuador and Panama. The Cobrasco segment of the mineral belt has not been subjected to modern exploration.

The discovery of significant new copper opportunities such as Cobrasco is essential for the mining industry to supply the copper necessary to transition from fossil fuels to advanced electrification.

The Company benefits from the experience of its directors and management, a team that has either been directly responsible for world-class mineral discoveries or has been part of the management teams responsible for such discoveries. Prior companies under their management included Exeter Resource Corporation and Extorre Gold Mines Limited, which held significant projects in South America. These companies were taken over by Goldcorp (Newmont) and Yamana respectively.

For additional information you are invited to visit the Rugby Resources Limited website at: www.rugbyresourcesltd.com.

Rob Grey, VP, Corporate CommunicationsTel: 604.688.4941 Fax: 604.688.9532Toll-free: 1.855.688.4941

Suite 810, 789 West Pender St.Vancouver, BC Canada V6C 1H2info@rugbresourcesltd.com

CAUTIONARY STATEMENT

Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the British Columbia, Alberta and Ontario Securities Acts. This includes statements concerning the Company’s proposed exploration plans for the Cobrasco project in Colombia and the El Zanjon and Venidero projects in Argentina, progress on obtaining approval for its exploration concession applications in Colombia, the expected timing of drilling and/or geophysics programs, budgeted costs to conduct exploration programs including drilling, high grade potential and potential for mineral discoveries at its projects and the style or occurrence of the mineralisation which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company holds certain of its projects under option agreements, which require annual cash payments, expenditure and/ or drilling requirements in order to maintain its interest. Should the Company not be able to meet its obligations or renegotiate the agreements it will lose its rights under the option agreement. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the effect on prices of major mineral commodities such as copper and gold by factors beyond the control of the Company; events which cannot be accurately predicted such as political and economic instability, terrorism, environmental factors and changes in government regulations and taxes; the shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration services; the Company’s dependency on equity market financings to fund its exploration programs and maintain its mineral exploration properties in good standing; political risk that a government will change, interpret or enforce mineral tenure, environmental regulations, taxes or mineral royalties in a manner that could have an adverse effect on the Company’s assets or financial condition and impair its ability to advance its mineral exploration projects or raise further funds for exploration; risks associated with title to resource properties due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the interpretation of laws regarding ownership or exploration of mineral properties in the Philippines, Argentina, Chile and Colombia and in the sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations, the timing of obtaining permits to conduct exploration activities, the ability to conclude agreements with local communities and other risks and uncertainties; risks related to the current military conflict between Russia and Ukraine; and the ongoing effects of the COVID-19 pandemic and including those described in each of the Company’s management discussion and analysis and those contained in its financial statements for the year ended February 28, 2022 filed with the Canadian Securities Administrators and available at www.sedar.com. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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